NEW DELHI (Reuters) - The Delhi government on Wednesday asked union Information Technology ministry to block the taxi-hailing apps of U.S.-based Uber and its local rival Ola in the city in a bid to enforce a ban on the companies' services.
India in December ordered all unregistered web-based taxi companies to halt operations until they obtain an operating licence after a driver contracted with Uber was accused of rape.
The ban, however, has largely been ineffective and both Ola, backed by Japan's SoftBank Corp, and Uber have continued to operate in Delhi while their licence applications are pending.
The Delhi authorities told Uber and Ola to stop operating if they want their licence applications to be processed. Now, the city believes blocking the apps is the only way to enforce the ban, a Delhi government official said, declining to be named as he was not authorised to speak to the media.
A spokesman for Uber declined to comment, while Ola did not respond to a request for comment. Officials at the union Information Technology ministry were also not immediately available for comment.
Online taxi companies see a lot of potential in India, a market Ola estimates to be worth between $8 billion and $10 billion.
The India ban is the latest in a slew of global problems facing Uber, which has come under scrutiny for alleged violations, including using unlicensed drivers.
((Reporting by Aditya Kalra; Editing by Malini Menon and Miral Fahmy))
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
